Omada Health, a digital health company specializing in chronic condition management, filed on Thursday to go public on the Nasdaq Global Market under the ticker symbol “OMDA.” The company is offering 7.9 million shares of common stock at a proposed price range of $18.00 to $20.00 per share, with Goldman Sachs, Morgan Stanley, and J.P. Morgan leading the underwriting syndicate. At the midpoint of the range, the offering is expected to raise around $150 million, giving Omada a post-offering valuation just shy of $1 billion.
A Virtual Care Model Built for Chronic Conditions
Founded in 2011 and headquartered in San Francisco, Omada Health is targeting a persistent and costly issue in U.S. healthcare: the long-term management of chronic diseases. Its platform blends connected devices, personalized coaching, and AI-driven tools to support patients between doctor visits—a model it calls “Between-Visit Care.”
The company’s programs cover diabetes, prediabetes, hypertension, obesity, and musculoskeletal (MSK) disorders. More recently, Omada has introduced tools for members using GLP-1 medications and expanded behavioral health services. It serves over 2,000 clients—including health plans, employers, PBMs, and health systems—and estimates that 20 million people currently have access to its programs through benefit coverage.
Unlike many healthcare solutions that focus on isolated conditions, Omada markets itself as a multi-condition platform capable of supporting co-morbid populations. Roughly one-third of its customers use more than one program, and the company positions this integrated care delivery as a key differentiator in a competitive landscape.
IPO Structure and Capital Allocation
The IPO will be a primary offering, meaning all proceeds will go directly to the company. Omada has stated that the capital will be used for a range of general corporate purposes. These include supporting research and development, enhancing engineering and product development, and investing in go-to-market capabilities such as sales and marketing. A portion of the proceeds may also be allocated to potential acquisitions of complementary companies or technologies. Notably, no existing shareholders are selling stock in the IPO, which some investors may interpret as a signal of internal confidence in the company’s growth trajectory.
Financial Performance: Top-Line Growth and Margin Expansion
Omada has demonstrated strong top-line growth over the past two years while working toward operating efficiency. Below is a snapshot of the company’s reported financial performance for 2023 and 2024, based on its SEC filing:
Revenue rose 38% year-over-year in 2024, building on 44% growth the year prior. Importantly, gross margins improved from 57% to 60.6%, indicating a more efficient cost structure. While the company continues to post net losses, those losses narrowed both in absolute terms and as a percentage of revenue. This trend may reflect a business moving toward scalability, even as it continues to invest in core infrastructure and customer acquisition.
Growth Strategy and Competitive Landscape
Omada has outlined several paths for growth following the IPO. The company aims to expand its reach among employers and insurers by increasing the number of covered lives across new and existing partnerships. Within its current customer base, it sees opportunity to upsell additional programs—especially given that many clients currently use only one service. Omada also hopes to drive higher enrollment rates among eligible individuals and improve program engagement using AI tools to personalize care and boost efficiency. It is also open to strategic acquisitions that can complement its core services, particularly in areas like musculoskeletal therapy or GLP-1 program support.
Competitively, Omada operates in a market with both legacy players and newer digital-first entrants. Its closest peers include Livongo (now part of Teladoc Health), Hims & Hers, and One Medical (acquired by Amazon). Many of these companies experienced significant volatility after going public, particularly around questions of profitability. Omada appears to be taking a more measured approach to valuation, which may better position it for sustainable growth and investor trust.
As with any emerging health technology company, Omada faces a number of business and operational risks. It continues to operate at a net loss and may require several more years of scaling to reach profitability. The company is also dependent on a relatively concentrated group of large customers and partners for revenue. In addition, it operates in a tightly regulated environment, which requires ongoing compliance with HIPAA and other privacy and data security standards. There are also industry-wide risks, including macroeconomic pressure on healthcare spending and increasing competition from point solutions and larger integrated platforms.
The Bottom Line
Omada Health enters the public markets with a clear mission: to improve long-term health outcomes through scalable, tech-enabled care. With a focus on chronic conditions and a model built around sustained engagement, the company has carved out a strong niche in digital health. Its financials show healthy growth and improving margins, and its partnerships with insurers and employers offer a credible distribution path.
Still, the road ahead includes challenges. Omada is not yet profitable, and investor sentiment around digital health IPOs remains cautious. For now, the company appears to be taking a conservative approach to pricing—potentially to give itself room to grow into a public market valuation over time.
Omada’s public debut is a milestone not only for the company, but also for the broader trend of digital care delivery aimed at addressing America’s most persistent healthcare problems.
OMDA is expected to debut the week of June 2nd, 2025